Netflix (NFLX) shares surged nearly 10% on February 26, 2026, after the company opted not to raise its bid for Warner Bros. Discovery (WBD) studio and streaming assets. This decision effectively ends what would have been Netflix’s largest-ever acquisition, allowing Paramount Skydance (PSKY) to pursue the Hollywood studio. Paramount’s all-cash offer increased to $31 per share, exceeding Netflix’s bid of $27.75 per share, which prompted Netflix to prioritize financial discipline over expanding its portfolio.
In the fourth quarter of 2025, Netflix reported a revenue growth of 16% year-over-year, reaching $45 billion, with an operating margin of 29.5%, expected to increase to 31.5% in 2026. The company plans to spend approximately $20 billion on content and anticipates revenues of $50.7-51.7 billion for 2026 while growing its advertising revenues, which crossed $1.5 billion in 2025.
In comparison, Paramount Skydance reported 78.9 million subscribers to its streaming service, up 4% from the previous year, yet faced a net loss of $573 million in Q4 2025. Disney’s streaming revenues rose 11% in early 2026, emphasizing its stronger financial position in the competitive streaming landscape.
